BOJ should show resolve for "unlimited" easing - LDP official

TOKYO Wed Dec 19, 2012 9:53pm EST

TOKYO Dec 20 (Reuters) - The Bank of Japan has already shown its readiness to keep an ultra loose monetary policy but stressing its resolve to ease "unlimitedly" would make a difference, a senior Liberal Democratic Party (LDP) official said on Thursday.

"What's important is to encourage private investment through easy monetary policy," said Hiroyuki Hosada, chairman of the LDP's general council told Reuters.

Hosoda, however, added that the LDP is not implying that the central bank should buy government bonds recklessly or intentionally create unwelcome inflation by setting a price target.

The BOJ meets for the second day of its policy-setting meeting on Thursday, when it is expected to ease monetary policy further via an increase in asset purchases.

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